Landlords and property managers alike are always on the prowl for ways to make their properties not only more profitable but a place that their tenants are happier to live in. After all, happy tenants are more likely to pay their rent on time every month.

One way to increase satisfaction among tenants while also increasing the cash flow of a property that has been gaining some traction in certain circles is the use of parking space storage. But what exactly is this kind of storage? That’s a pretty important detail that cannot be overlooked.

This kind of on-site storage is an investment, and no good investor dives into an investment without being sure that they know exactly what they’re getting themself into. Research is a pivotal part of investing, whether it’s in storage lockers on a property or into stocks in some Fortune 500 company.

That’s exactly why we’ve written today’s article. We’re going to be exploring the concept of parking space storage, what it is, how it can help you with your property’s cash flow, and how tenants typically feel about the addition of this kind of storage. Today’s article is shaping up to be a very exciting one, so let’s get to it.

On-Site Storage for the Modern World

People have things, right? Well, most people. Some people are pretty minimalistic and don’t have very many things at all, but other people have more stuff than they know what to do with. Even some people that are minimalists enjoy having some auxiliary storage for things that they aren’t using at the present moment.

This is something that everyone is aware of. In fact, the world is so aware of this fact that the off-site storage industry is worth billions of dollars annually. People have things they need to store, it’s just a fact of life.

That’s where parking space storage comes into play. People call it a lot of different names, for example:

  • Parking lot storage.
  • Parking garage storage.
  • Parking lot storage lockers.
  • On-site storage solutions.
  • Apartment storage.
  • Personal storage lockers.

It always goes by different variations of the ones that we’ve listed. The important thing is that you’re sure that you’re talking about the right thing before you get a salesperson on the phone. So, what exactly is this kind of storage? It’s actually a pretty simple concept, you probably already have a good guess.

Parking lot storage is an on-site storage solution that allows your tenants to store their things in a storage unit or locker that’s on the apartment complex’s property, rather than having to drive off to a U-Haul or other self-storage facility every time they want to access their unit.

They’re commonly referred to as “parking lot storage” because a lot of properties choose to keep them in the parking lot or garage. That’s usually because of where the space is, you can realistically put these up anywhere on your property that you have the room to do so.

If you’ve spoken with other landlords, property managers, or representatives from other property management companies, odds are you’ve heard multiple people speak about these using many different words because of this. Just keep in mind, if the storage is on-site, they’re probably talking about the same thing as you.

How do Tenants Feel about On-Site Storage?

Here’s the big question, how do tenants feel about this kind of storage? If tenants typically don’t appreciate this kind of amenity then what’s the point of going through all of the efforts and spending all the money to get it installed on your property?

Well, it depends on the tenants. You typically have four different types of tenants when it comes to their storage needs. You have your:

  • Die-hard minimalists.
    • Die-hard minimalists are not the most common group, but they do not have enough stuff to justify using one of your storage units in most cases. Anything that they’ll ever need can be stored in their apartment.
    • Some people are minimalists but still have a little bit more than die-hard minimalists. These people have things to store in many cases, and those things are usually things like winter clothes, guest bedding, etc.
  • Non-minimalists.
    • Non-minimalists are the most common group by far. They have plenty of things to store and might already have an off-site storage unit. They have a high likelihood of wanting to use your storage units.
  • Non-minimalists on a budget.
    • Now, non-minimalists might not be able to justify the cost of an on-site storage unit. Whether they have the money or not, they might prefer to live in a cluttered environment than pay extra money every month.

Basement Garage Storage Units - Space Commander

Now, you might assume that this list would be split into quarters, but that would be incorrect. In a typical apartment complex, non-minimalists make up about 50% of the tenants, minimalists make up 30%, minimalists make up 10% and non-minimalists on a budget take up that last 10%.

That means that 80% of tenants in an average apartment complex have at least some storage needs, which bodes well for you. But how does that 80% feel about on-site storage? On average, pretty positively.

Studies have been conducted on this in areas where on-site storage is already pretty common, and most tenants say that they appreciate that the option is there even if they don’t use it. Since we’re already talking about percentages, can you guess what percent of tenants feel that way?

Roughly 95% of all tenants share that sentiment. That means that whether or not every single one of your tenants takes advantage of the on-site storage, 9.5 out of 10 of them are happy that the option is there if they need it.

How To Monetize On-Site Storage

After reading the rest of this article, you might be wondering how you’d make much money from this project. Certainly, you’ve already figured out how you’d spend money on this. Spending money is easy, but making money isn’t always as easy.

They do say “you’ve gotta spend money to make money,” but that doesn’t mean that you’re guaranteed to make money every time you go to the store and get a small bag of Sour Cream and Cheddar Ruffles from the corner store. Most of the time it takes a plan.

Well, on-site storage is actually one of the easiest things for your to monetize if you think about it. Firstly, you want to make sure that you’re picking out the right lockers for the job. If you get something that’s too cheap, no one will want to use it because it’s insecure.

On the other end of the spectrum, if you get something too expensive you might not be able to charge a high enough price to make your money back without your tenants deciding that it would be better to just go to an off-site storage facility for a fraction of the price.

The good news here is that you can get some incredibly high-quality lockers on a budget. In fact, there are some really high-quality storage units that are in the same price range as the lower quality ones. Just keep that in mind while you’re searching.

There are two big things that you need to keep in mind; pricing and marketing. Pricing is easy. You can charge a bit of a premium for the convenience, but don’t forget that your competition can provide exponentially more storage for pretty cheap. A 100 sq foot storage unit usually only costs $100-$120 a month.

As long as you don’t price your units so high that your tenants will think it’s a better deal to drive at least 10-15 minutes to get to an off-site storage facility, there’s a good chance that they’d prefer to use yours. Remember, your tenants don’t have to drive anywhere to get to the on-site storage.

That means that they’re saving on gas money by using your storage, and the ability to access their things 24/7 only sweetens the deal. Pricing here is about finding a happy middle ground that both you and your tenants can be happy about.

As far as marketing goes, this is one of the easiest things in the world to market. Just let your tenants know that the storage is coming and anyone that’s interested will automatically budget for it so they can take advantage of the storage as soon as it’s available.

Renovating Your Property for Good

There are a lot of renovations that you can do to your property, for better or worse. Some renovations are huge, like adding a playground area for children. Others are a lot smaller, like adding some on-site storage for your tenants to use.

Regardless of what kind of renovations you decide to do on your property, knowing which ones are the most easily monetizable can help improve your property’s cash flow year after year, and the more money your property makes, the more money you’ll be able to make in the long run